Market Recap
JCI closed lower yesterday, following the regional markets. It was pressured by the infrastructure sector. On the other side, 3Q18’s earnings season was futile to send JCI’s movement higher. Top Losers: Infrastructure (-2.52%), Mining (-0.90%), Finance (-0.49%).
Global markets were in the sluggish territory yesterday. Meanwhile, the U.S. investors still kept their wary eyes on the trend of monetary tightening, unresolved trade war between the U.S. and China, and the tech. sector movement. The futile Brexit talks caused to lower European stocks. Furthermore, the Fed’s hawkish stance of monetary tightening and the accusation of China as a currency manipulator weakened the Asia markets.
Today’s Outlook: China’s Economic Growth
We estimate that today JCI is reign in a sluggish territory with the support range of 5789-5799 and resistance range of 5867-5875. Today investors digest the release of China’s GDP growth in 3Q18. Based on consensus, China’s GDP growth will reach 6.6%, lower than 2Q18’s GDP growth of 6.7%. China’s GDP growth decelerated amid the unresolved trade dispute between the U.S. and China. The global markets tumbled ahead of the release of China’s GDP growth.
From the domestic outlook, BMRI and BBNI’s 3Q18 earnings are futile to bolster rally in their stocks prices. Investors consider that the two banks performance in 3Q18 met the expectation, yet their performance gave no spectacular results.
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